James Pinchbeck, partner at Streets Chartered Accountants, shares the benefits of arranging more frequent visits with your accountant.
For many in business the idea of spending more time with their external accountant may sound a bit alien. It certainly is not untypical for most business owners and their accountants to only meet once a year to review the annual accounts and to discuss the tax returns. Invariably, most can then be forgiven for thinking that there is little to be gained from frequent contact.
More and more businesses, especially owner managed businesses, entrepreneurial start-ups and scale-ups, have a lot to gain from being in touch and meeting with their accountant more frequently, say at least once a quarter or even more often.
Certainly, accountants in practice advocate a closer working relationship with their clients. They too feel that their work is much more than undertaking annual compliance assurance and that they have a key role in providing support and guidance as their clients’ trusted adviser.
In contrast to much of an accountant’s work focusing on looking back at historical figures to produce your annual accounts, there is much to be gained from a review of the in year management accounts – a role which your external adviser is certainly well placed to do by bringing their broader experience and commercial insights to bare on the numbers. Also, if you don’t have the resources they may even assist with management accounts production. In focusing on the in year numbers, businesses can look to address any emerging issues and challenges around profitability, cost control, working capital requirements, capital investment decisions and even potential tax issues.
In an increasingly digital world, not least in terms of financial reporting, being able to tap in to the knowledge of your adviser can be a real asset ensuring your systems are set up and running correctly. This also provides the unique and informal chance to help support and train in house team members and answer any queries they may have.
Like many other firms of accountants, Streets endeavours to ensure clients are informed and updated of legislative changes and other factors affecting their business. Busy working lives often means such information gets overlooked. However, more regular and structured contact helps to ensure clients are kept up to date of changes and issues that may affect them.
Finally, when it comes to your financial year-end, as a result of contact throughout the year, this should be a smooth and seamless process. It should also be one with little or no surprises and that provides time for well thought out year-end tax and financial planning – an outcome which will no doubt harbour a better and more worthwhile relationship between client and accountant alike.
See this column in the March edition of East Midlands Business Link Magazine here.
